The Importance of Diversifying Investments

Posted by Mike Cobb on Feb 3, 2016 2:13:49 PM


The odds are high that you've heard the phrase, "Don't put all your eggs into one basket." This applies to several areas of life, but perhaps it is most effective when used in the world of investing. Entrusting all of your assets to a single country, bank account or form of currency can be a big risk, and anything from a government collapse to inflation could leave you vulnerable to serious financial losses.

Right now, the real estate market in growing destinations such as Nicaragua is off the radar screens of many investors. Take advantage of this relatively unknown choice as you mitigate risk, diversify investments and make the most of an exceptional opportunity.

Discover some of the top reasons diversification is vital for your investment holdings.

Maximize ROI Potential

When you diversify your portfolio by investing in real estate or by investing overseas, you are taking a big step toward maximizing your potential ROI, or return on investment.

No two investments are the same, and each offers a unique ROI. By mixing more traditional investments like stocks and bonds with choices such as real estate in Nicaragua, you are opening yourself up to the potential for far bigger profit margins.

In Nicaragua, the value of real estate is still surprisingly low, but it is unlikely to stay that way for long. By padding your portfolio with property at Gran Pacifica, you can diversify your holdings and potentially turn major profits in the months and years ahead.

Protect Against Currency Devaluation

Another pivotal reason to embrace the diversification of investments is when it comes to mitigating risk. Every investor wants their net worth to grow over time, but things like government collapses, stock market crashes or industry failures can all hamper that growth.

If you placed all of your wealth into the American stock market, for instance, and then economic reform devalues all of your holdings, you could face a big loss. If some of your assets had been devoted to unique investments such as real estate in a tropical setting like Nicaragua, profits there could help balance out losses in other areas.

Create a Safety Net for You and Your Loved Ones

Diversification is more than just an investment strategy. It can have a direct impact on the quality of life and on your peace of mind. If you know that you are reducing vulnerabilities and keeping financial freedom through a diversified portfolio, then you can feel better about other potentially risky investments.

You can also rest assured that your loved ones will always be taken care of, as you won't need to worry about the total devaluation of your holdings. 

See Results in More Stable Income and Net Worth

Diversification also means a wider range of investment types. Some of these investments might be long-term ventures with small profit margins but great levels of stability.

Some may be short-term with bigger risk, but also bigger reward. You can also invest in Gran Pacifica properties in Nicaragua as a way to supplement your income through regular rental profits, all of which can be done as the value of the property grows.

Diversification is an important element of any investment strategy. A wide range of investment types can bring you greater potential for profits, less risk and a defense against things like currency devaluations.

While there are many investment options to consider, real estate in Nicaragua is a savvy choice while property prices remain low and profit margin potential is high.

Explore your options to find out all Nicaragua has to offer.

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Mike Cobb

Written by Mike Cobb

In 1996, Michael K. Cobb and his business partner formed a company, Exotic Caye International, to provide loans to North Americans purchasing properties in Belize, Honduras, Costa Rica, and throughout the region. With a strong focus on consumer need, Mr. Cobb accurately predicted the growing demand for high quality, residential product for North American "baby boomer" retirees in the region. He led the group into real estate development and created a holding company called ECI Development for several properties, including a resort on Ambergris Caye, Belize. Michael speaks at dozens of international conferences annually about offshore real estate finance, development, and ownership. He was a consultant to The Oxford Club, hosted a weekly radio program, contributes regularly to overseas publications, sits on the board of several international companies, gives counsel to various real estate projects throughout Central America, and serves on the Board of Directors and the President’s Advisory Group for the National Association of Realtors, NAR.

Topics: Investing in Nicaragua